The future U.S. economy will depend on Hispanics by virtue of demographic change and the social and cultural shifts expected to accompany their continued growth, according to a new Nielsen report, State of the Hispanic Consumer: The Hispanic Market Imperative, which explores multiple aspects of this population.
“It has become increasingly important to challenge commonly held misconceptions about the Latino market that undermine the importance of its size, uniqueness, and value,” reads the report. The topics of this report draw on compelling evidence of market change and the perspective of marketers who have proven success in the Latino marketplace:
- Latinos are a fundamental component to business success, and not a passing niche on the sidelines.
- Rapid Latino population growth will persist, even if immigration is completely halted.
- Latinos have amassed significant buying power, despite perceptions to the contrary.
- Hispanics are the largest immigrant group to exhibit significant culture sustainability and are not disappearing into the American melting pot.
- Technology and media use do not mirror the general market but have distinct patterns due to language, culture, and ownership dynamics.
- Latinos exhibit distinct product consumption patterns and are not buying in ways that are the same as the total market.
Between 2000 and 2011, Hispanics accounted for 50 percent of U.S. population growth—14.7 million vs. 14.5 million among non-Hispanics. But between 2011 and 2016, Hispanics will comprise 60% of growth—7.4 million vs. 5.0 million, says Nielsen.
Rapid Latino population growth will persist, even if immigration is completely halted, says Nielsen. It cited long-range U.S. Census Bureau forecasts for Hispanic growth of 167 percent between 2010 and 2050 vs. 42 percent for the U.S. population overall.
The Latino population is young compared with a graying U.S. population—60 percent of the group is under age 35, and 75 percent is under age 45. The current median Latino age is 28 vs. 37 in the general population.
The Lempert Report mentions some of the distinctive ways Hispanics consume products and use media and technology:
- Hispanics make fewer shopping trips per household than non-Hispanics and spend more per trip.
- Hispanics spend 68 percent more time watching video on the Internet and 20 percent more time watching video on mobile phones than non-Hispanic whites.
- Hispanics are 28 percent likelier to own a smartphone than non-Hispanic whites. But they are less likely to access the Internet at home—62 percent vs. a 76 percent U.S. average.
Source: Nielsen, State of the Hispanic Consumer: The Hispanic Market Imperative, and Latino insights key to a vast growing market by The Lempert Report / Consumer Insight, Inc., Feb-April 2012.